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2019 (2) TMI 1528 - AT - Income TaxValidity of Assessment orders u/s 153A - High Court quashed the order passed by the ITSC u/s 245D(2C) rejecting the applications of the assessee for settlement of their case for the relevant assessment years - HELD THAT - We have to keep in mind that such orders were passed pursuant to the observations of the Hon ble High Court by way of interim directions on 21.5.2013 that the assessment proceedings may continue and orders may be passed. No doubt so long as the ITSC holds the jurisdiction such an action of the AO was not permissible but when the ITSC has rejected the settlement application of the assessee, it cannot be said that the AO does not have jurisdiction to proceed with the assessment and to pass the orders. Such a course was permitted by the Hon ble High Court in the writ preferred by the assessee. Therefore, it cannot be said that the assessment orders in these years are without jurisdiction or bad under law ab initio. Subsequently, the Hon ble High Court quashed the order dated 3.4.2013 passed by the ITSC and directed the ITSC to proceed with the matter and consider the applications filed by the assessee on merits, In view of this the impugned assessment orders have become infructuous and now the jurisdiction stands vested in the ITSC. We, therefore, are of the considered opinion that all these appeals against the infructuous orders are also infructuous - Decided in favour of assessee.
Issues:
Challenging order dated 19.2.2015 by CIT(A) for Assessment Years 2008-09, 2009-10, 2010-11, and 2011-12. Validity of assessment orders passed by AO following rejection of settlement application by ITSC. Impact of High Court's order dated 9.10.2017 on assessment orders. Jurisdiction of AO to proceed with assessment post rejection of settlement application by ITSC. Infructuous nature of impugned orders post High Court's direction to ITSC. Analysis: Issue 1: Challenging CIT(A) Order The appeals were filed by the assessee against the order dated 19.2.2015 by CIT(A) for the Assessment Years 2008-09, 2009-10, 2010-11, and 2011-12. The CIT(A) upheld the assessment order passed by the AO. The assessee challenged these orders through the appeals. Issue 2: Validity of Assessment Orders Following the rejection of the settlement application by the ITSC, the AO issued notice for assessment under different sections of the Income-tax Act for various assessment years. The High Court, through interim orders, directed the assessment proceedings to continue. The AO subsequently passed assessment orders, which were challenged by the assessee before CIT(A). Issue 3: Impact of High Court's Order The High Court, through an order dated 9.10.2017, quashed the orders passed by the ITSC and directed it to proceed with the applications filed by the assessee. The assessee intended to raise an additional ground challenging the jurisdiction of the assessment orders in light of this High Court order. Issue 4: Jurisdiction of AO The contention was raised regarding the jurisdiction of the AO to pass the assessment orders post the rejection of the settlement application by the ITSC. The High Court's interim directions allowed the assessment proceedings to continue, and the AO proceeded with passing the orders. Issue 5: Infructuous Nature of Orders Considering the High Court's direction to the ITSC to proceed with the matter and reconsider the applications filed by the assessee, the Tribunal concluded that the assessment orders had become infructuous. The jurisdiction now vested with the ITSC, making the appeals against the impugned orders also infructuous. In conclusion, the Tribunal allowed all the appeals filed by the assessee, holding the impugned orders as infructuous due to the High Court's direction to the ITSC, which impacted the jurisdiction of the assessment orders passed by the AO.
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